"With the trade war between the US and China likely to escalate, auto OEMs need to brace themselves for higher volatility and burgeoning costs. While US automakers Ford and Tesla are already facing the brunt, German companies Mercedes-Benz and BMW, that have plants in Alabama and South Carolina, also face a heavy blow. Estimates suggest the trade war has already cost BMW €300 million (roughly US$333 million) in 2018. General Motors, which produces locally in China, too has been hit by levies on its auto parts. The bigger anxiety for GM and companies with few exports to China, however, are retaliatory measures on parts made in China for US vehicles. The additional tariffs are prompting Daimler to consider assembling some SUVs in South East Asia, as BMW does with the X5 for export into China. Tesla remains focused on getting its new plant in Shanghai running by the end of this year and is betting on its Model 3. With tariffs kicking-in in December, the impact will depend on how quickly Tesla can commission its local manufacturing." – Vinay Piparsania